By Paige Simpson

Paige Simpson is a Senior at the University of Kansas School of Business pursuing a Bachelor’s of Science in Supply Chain Management degree, with a minor in Entrepreneurship. Currently, she is the Head Writing Coach at the KU School of Business Communication Center, as well as a teaching assistance for three additional courses.


Data. How can companies use data to promote not just any customer experience, but the ultimate customer experience?

In 2018, 63% of US senior business decision-makers listed big data/analytics as the “most important emerging technology for enhancing customer experience.”

Turning Challenges into Opportunities: Acknowledging and Overcoming Difficulties Regarding Data Integration

Using data for the promotion of the customer experience poses challenges.

Forbes reported that over 70% of users “don’t trust retailers with their data.”

63% of US senior business decision-makers listed big data/analytics as the “most important emerging technology for enhancing customer experience.”

A company that has a successful customer relationship management (CRM) department typically acquires information by giving customers a tangible benefit in exchange of their data. This practice is problematic because of the fact that gathering data while simultaneously creating positive customer sentiment in relation to data-acquisition is time-consuming.

Big data and concerns over company data usage are an obstacle for companies today. Companies must invest time to understand how gathered data can improve the customer experience, as that is key to maintaining a strong customer base.

People discussing over big data gathered; Data Information Statistics Technology Analysis Concept
Companies should reap the benefits of gathering insights gathered from big data

Improper usage of data can have adverse and counterproductive effects in both customer retention and customer satisfaction rates.

Over 70% of users “don’t trust retailers with their data.”

A survey by Experian revealed that 45% of customers would “walk away from a company that contacted them via a channel the customer indicated they did not wish to be contacted.”

3 Ways Companies Can Use Data to Enhance the Customer Experience

1. Personalize Customer Interaction

Amazon excels at the art of using customer data to enhance their customers experience through personalization. According to Investopedia, Amazon uses a filtering engine to personally recommend additional products to the customer depending on what their purchasing habits are. This also pertains to Amazon Video’s personalized viewing suggestions, catered to the individual subscriber.

45% of customers would “walk away from a company that contacted them via a channel the customer indicated they did not wish to be contacted.”

Netflix is another company who has properly leveraged customer data to their advantage. Like Amazon Prime Video, Netflix has also enjoyed massive success when using customer data. Netflix subscribers, including myself, love that the company “matches” the user with shows and movies they may enjoy.

According to Netflix, “over 75% of viewer activity is based-off personalized recommendations”.

Suggested recommendations work effectively to continually re-engage a company’s customer base. Amazon and Netflix are clear examples of how investing in analyzing consumer data can double down on revenues and, ultimately, the customer experience.

Netflix's and Amazon Prime Video's logo to compare and contrast both brands
Netflix and Amazon are re-engaging with customers through their customized movie and TV shows recommendations

2. Rapidly Resolve Customer Disputes

In 2015, customers were willing to wait 13 minutes for relevant information from a customer service center. Today, ClickZ reports that over two-thirds of customers are not even willing to wait two minutes for problem resolution.

This data has transformed how companies handle problem-resolution. To ensure rapid response time to consumer concerns, companies like Zappos and American Airlines have rapidly adjusted how they train their employees to respond to customer issues. Both companies train their employees to freely address customer concerns how they see fit. This means that American Airlines flight attendants are empowered to autonomously resolve issues by, for instance, give out complimentary miles “on the spot”. Likewise, Zappos offers its customers “free exchanges, expedited shipping, or gifts” to ensure problem resolution and reduce the amount of complaints filed.

A lady on a computer at a company's call center helping customers out over the phone
Customers today are very impatient with having their issues resolved

3. Captivate Your Target Market

Market Business News wrote that data collection can help companies determine their target audience. This is imperative to the success of any business due to the fact that knowing such valuable information enables companies to properly reach prospective customers and encourage them to purchase their products and/or services. This aides in digital marketing campaigns, as it requires data to make better-informed and strategic decisions.

Marketers are like storytellers, their job is to captivate their audience. If a company can use data to understand their customers’ buying habits, they can ensure that they can meet their needs.

Marketers must know and use customer data to be successful storytellers. Once their target audience is captivated, companies will have increased their customer retention rates while building positive brand image.

Successfully organizing unstructured data can promote quicker restocking rates, along with many other benefits that lead to a better customer experience. Sophisticated supply chains, for instance, use data for forecasting, transportation, and inventory management.

If companies can use data to understand their customers buying habits, they can ensure that they can meet their needs.

Utilizing customer data is the most fit tool in increasing the satisfaction associated with the customer experience. Managing high-quality data enables a company to make strategic decisions to build competitive advantage. Analyzing and using data to promote the customer experience is a win-win for both the customer and the company harvesting the data. This is the way of the future.

People analyzing charts and graphics from a tablet to represent data analytics in business
What does the data tell you about your customers?

At the end of the day, if a company isn’t analyzing insights from customer data to truly get to know their customers, their competitors will.

One thought on “Utilizing Data to Promote the Ultimate Customer Experience

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s